LULA GOVERNMENT ANNOUNCED THAT IT WILL INCREASE TAXES TO 22.5% FOR ALL BITCOIN USERS IN BRAZIL
After creating a tax of up to 15% for Bitcoin and cryptocurrencies on exchanges outside Brazil (Offshore Law), which has already been incorporated by the Federal Revenue Service in this year's annual income tax declaration, President Luiz Inácio Lula da Silva (PT) announced that he will increase taxes for all cryptocurrency users.
According to the government, the proposal is not to create a new tax, but to further increase rates for users who own crypto assets.
The government's idea is to 'close in' on those who are using crypto assets to avoid paying Income Tax (IR).
The Lula government intends for this rule to be applied to cryptocurrency investments in Brazil and, therefore, will make tax evasion more difficult, since exchanges operating in the country are required by IN 1888 to report all user transactions to the Federal Revenue Service, which has already revealed that it cross-references the data of all crypto holders with other data received by the institution.
Government technicians are still debating whether there will be a minimum rate for the 22.5% tax or whether it will be applied to all cryptocurrencies.
In addition, there are also disagreements about when the tax should be levied, whether 'on transactions with cryptocurrencies (crypto/crypto or crypto/fiat)' or whether the user will be taxed only for owning a specific amount of cryptocurrencies, even if he or she does not trade with them.
Finance Minister Fernando Haddad will include the proposal in a new Bill that will be sent to the National Congress to change the taxation of financial investments.
